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October 6th, 2009 3:12 pm
Pelosi: ‘It’s Time to Consider a VAT’
Posted by Print

In a recent interview with Charlie Rose, Speaker Pelosi not only hinted at a Value-Added Tax (VAT) to pay for health care “reform,” she practically endorsed the idea as a way to equalize tax treatment between the U.S. and Europe.

Pelosi stated, “Somewhere along the way, a value-added tax plays into this.  Of course, we want to take down the health care cost, that’s one part of it.  But in the scheme of things, I think it’s fair to look at a value-added tax as well.”

The implementation of a VAT would assuredly break President Obama’s pledge that no one making under $250,000 would see a tax increase of any kind.  A VAT is essentially a massive sales tax (over 20% in some countries) on all consumers.  What’s worse, a VAT is typically not transparent, that is, prices go up but consumers don’t see the tax when they’re at the checkout counter.

See below for Obama’s pledge.  Studies on the regressive and horrible idea of a VAT here and here.

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